The price of a pack of Pokemon cards is $5, and the price of a pack of baseball cards is $3. Suppose Will, whose preferences are complete, transitive, monotonic and convex, uses all of his income to buy 5 packs of Pokemon cards and 5 packs of baseball cards. At this consumption bundle, you could take away 4 packs of Pokémon cards if you give him 7 packs of baseball cards and not change his utility.
1. Which of the following is necessarily true?
a. Will could increase his utility by buying more Pokemon cards and fewer baseball cards.
b. Will could increase his utility by buying more baseball cards and fewer Pokemon cards.
c. Will could increase his utility by buying fewer Pokemon cards and fewer baseball cards.
d. Will is already at his utility maximizing bundle.

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?